Purpose: WAC 246-790-010 through 246-790-130, WIC
nutrition program, the rules update a variety of references,
definitions, and terms, further define the standards of
practice and requirements for retailer participation in the
WIC program, and assure consistency between the rule and the
retailer contracts. They reflect "plain talk" changes
necessary to provide clarity for retailers and are necessary
to stay in compliance with federal regulations in order to
maintain funding.

WAC 246-790-010
Definitions.
(((1) "Alternate endorser"
means a person authorized by the WIC client to pick up WIC
checks at the local WIC agency and use the WIC checks at the
retailer when the client is unable to do so.

(2) "Appeal hearing" means a formal proceeding to appeal
certain program decisions. The appeal hearing process
provides a contractor the opportunity to review the case
record prior to the hearing, to present its case in an
impartial setting, to confront and cross-examine witnesses,
and to be represented by counsel.

(3) "Applicant retailer" means any retailer, or person
representing a retailer, requesting authorization to
participate in the WIC program who has submitted a completed
request for authorization packet.

(4) "Authorized" or "authorization" means the retailer
has met the selection criteria as required by the United
States Department of Agriculture (USDA), received training on
WIC program requirements, and signed a contract with the WIC
program.

(5) "CFR" means the Code of Federal Regulations.

(6) "Contract" or "retailer contract" means a written
legal document which encompasses WIC program requirements that
bind the contractor and the WIC program.

(7) "Contractor" means the owner, chief executive
officer, controller, or other person legally authorized to
represent their corporation, firm, or business and obligate a
retailer to a contract.

(8) "Covertly" means in secret, undercover, or not openly
announced.

(9) "Current shelf life" or "pull date" or "use by date"
means a date and code printed on an item that indicates its
best quality. This date shows when a product must be either
sold or pulled from a shelf.

(10) "Department" means the Washington state department
of health and any of the officers or other officials lawfully
representing the department.

(11) "Disqualification" means the act of revoking the
authorization and ending the contract of an authorized
retailer permanently or for a specific period of time for
noncompliance with WIC program requirements.

(12) "Effective policy and program to prevent
trafficking" means a written document that states what can and
cannot be done with WIC checks and the consequences for
failing to follow program requirements. Effectiveness is
determined by documentation that a retailer has provided this
written policy to all employees, including employees'
signatures verifying they have been advised of the policy and
understand the consequences of noncompliance, both for the
retailer and for the employee, prior to any noncompliance
being detected.

(13) "Food company" means a manufacturer or broker of
food items.

(14) "Food stamp EBT" means the electronic system that
allows a recipient to authorize transfer of their government
food benefits from a federal account to a retailer account to
pay for products they buy.

(16) "Maximum price" means the highest amount that can be
charged for WIC approved foods as determined by the WIC
program based on evaluation of current prices and market
conditions.

(17) "Monetary penalty" means a sum of money imposed by
the WIC program for noncompliance with program requirements.

(18) "Notice of correction" means a written document
given to a retailer when the WIC program discovers
noncompliance with program requirements. The notice of
correction gives the retailer a reasonable period of time to
correct the noncompliance without risk of receiving a
sanction.

(19) "Pattern" means more than one documented incidence
of noncompliance with WIC program requirements in a contract
period.

(20) "Peer group" means a group of retailers who share
similar characteristics. The WIC program considers factors
such as location, either rural or urban, and the prices
retailers charge when determining a retailer's placement in a
peer group.

(21) "Providing credit" means the retailer takes a WIC
check and deposits it for the full amount of the foods listed,
even though the client does not receive all the foods at the
time, and tells the client to come back later for the rest of
the food.

(22) "Reauthorization" or "subsequent authorization"
means the process when a retailer, who has a contract with the
WIC program which is expiring, has reapplied, met the
selection criteria, and signed another contract with the WIC
program.

(23) "Redeeming WIC checks outside of authorized
channels" means not following the requirements regarding who
can accept WIC checks and how to redeem them. Examples
include, but may not be limited to:

(a) A retailer accepting WIC checks without having a
signed contract with the WIC program;

(b) A retailer using WIC checks to repay debt at a
different authorized retailer; or

(c) A retailer who accepts and deposits WIC checks from
an unauthorized source.

(24) "Rights and responsibilities" means the rights a
client has within the WIC program and the rules clients and
caregivers must follow to participate in the program. The
rights and responsibilities are explained in a document the
client, caregiver, or alternate endorser must sign.

(25) "Supplemental WIC foods" or "WIC approved foods"
means those foods containing nutrients determined to be
beneficial for pregnant, breastfeeding, and postpartum women,
infants, and children, as prescribed by federal regulations
and state requirements, and, as approved by the Washington
state WIC program.

(26) "Trafficking" means buying or selling WIC checks for
cash.

(27) "WIC program" or "program" means the federally
funded special supplemental nutrition program for women,
infants, and children administered in Washington state by the
department of health.

(28) "WIC program requirements" or "program requirements"
mean the rules contractors and retailers must follow to
participate in the WIC program. The rules are explained in
the federal regulations, the retailer contract, the Retailer
Selection Criteria, the WIC Approved Foods - Minimum Stock
Levels, the WIC Retailer Handbook, and the WIC approved
formula supplier list.

(29) "WIC retailer" or "retailer" means an individual
store authorized to participate in the WIC program.

(30) "Wholesaler" or "distributor" or "supplier" means a
business licensed to sell food and other items to a retailer
for resale.

(31) "WIC check" means a negotiable instrument issued to
and used by a WIC client, caregiver, or alternate endorser to
obtain specified supplemental WIC foods from a WIC retailer.

(32) "WIC client" or "client" means a woman who is
pregnant, breastfeeding, or postpartum, an infant, or a young
child receiving WIC benefits.

(33) "WIC only store" means a for-profit business model
that focuses primarily on stocking WIC food items and serving
WIC customers.)) The definitions in this section apply
throughout this chapter unless the context clearly requires
otherwise.

(1) "C.F.R." means Code of Federal Regulations.

(2) "Contract" means a written legal document binding the
contractor and the department to designated terms and
conditions. Terms and conditions include those stated in 7
C.F.R. 246.12 (h)(3) under "Retail food delivery systems:
Vendor agreements, Vendor agreement provisions."

(3) "Department" means the Washington state department of
health.

(4) "Retailer" means "vendor" as defined in 7 C.F.R.
246.2.

(5) "Wholesale supplier" means a business licensed to
sell food and other goods at prices lower than retail to a
retail vendor for resale to customers.

(6) "WIC" means the federally funded special supplemental
nutrition program for women, infants, and children as
described in 7 C.F.R. 246 and defined in 7 C.F.R. 246.2.

NEW SECTIONWAC 246-790-055
Adoption by reference.
Adopted by
reference are 7 C.F.R. 246.2, 246.12, 246.18, 246.21, 246.23,
and 246.26 special supplemental nutrition program for women,
infants, and children revised as of January 1, 2011, and
including all amendments and modifications effective as of the
date of adoption of this chapter.

Copies of the incorporated sections of 7 C.F.R. 246 are
available from the Department of Health, P.O. Box 47886,
Olympia, WA 98504-7886, or by calling the WIC nutrition
program at 800-841-1410.

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NEW SECTIONWAC 246-790-075
Requirements to become an authorized
retailer.
(1) To become authorized in the WIC program an
applicant must:

(2) The effective date of authorization is the date on
which the last party to sign the contract signs it. The
department and the retailer are the parties to the contract.

(3) The department shall give an applicant thirty days
notice to correct their application when it is incomplete or
insufficient in any manner before the department denies
authorization.

(4) The department may not accept a new application
sooner than six months after an applicant's denial.

(5) An applicant or an authorized retailer may request an
exemption to the retailer selection criteria in WAC 246-790-077.

(a) The request must:

(i) Be in writing;

(ii) Identify the specific retailer selection criterion
or criteria for which the retailer is seeking an exemption and
explain the reasons for the request in detail; and

(iii) Demonstrate how the requested exemption is
consistent with the requirements, purpose and objectives of
the program.

(b) The department may grant an exemption from retailer
selection criteria if the applicant submits a request that
satisfies (a) of this subsection.

(c) The department shall respond in writing to a request
for exemption with its decision to grant or deny the request.

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NEW SECTIONWAC 246-790-077
Retailer selection criteria.
An
applicant and an authorized retailer shall meet all the
following retailer selection criteria to be authorized.

(1) Business license, permit, and certification
requirements.

(a) A current master business license and unified
business identifier number issued by the Washington state
department of revenue as required under chapter 19.02 RCW with
a major operation category that includes the retail sale of
foods, such as grocery store.

(b) A current reseller's permit issued by the Washington
state department of revenue as required under chapter 82.32 RCW.

(c) A current food establishment permit issued by the
local health jurisdiction as required by the Washington state
board of health under chapter 246-215 WAC.

(d) A current weighing and measuring device registration
issued by the Washington state department of agriculture as
required under chapter 16-674 WAC.

(e) A current authorization as a vendor in the
supplemental nutrition assistance program (SNAP).

(f) Comply with all other applicable federal, state,
county, and city required licenses, permits and
certifications.

(2) Business model requirements.

(a) Be primarily engaged in retail sales of a variety of
food products and general merchandise as a full line grocery
store. A full line grocery store stocks on a continuous
basis, multiple varieties of the following product categories:

(d) Not use the WIC program name, acronym, or logo in the
store name or advertisement, advertise primarily to WIC
customers, offer incentives primarily to WIC customers, or
otherwise focus primarily on serving WIC customers.

(e) Not receive or expect to receive more than fifty
percent of annual food sales revenue from WIC transactions.

(f) Maintain on store shelves at all times the minimum
quantities and varieties of WIC approved foods, including
infant formula, required by the contract. Expired foods are
not counted as inventory.

(g) Maintain shelf prices for WIC approved foods that are
competitive with retailers in the same WIC retailer peer
group. A "peer group" means a group of retailers who share
similar characteristics established by the department.

(h) Operate from a fixed, permanent location where all
WIC transactions take place in the store.

(i) Maintain business hours of at least eight hours per
day, six days per week.

(a) Maintain a recordkeeping system that meets the
Washington state department of revenue requirements in WAC 458-20-254 including the following:

(i) The recordkeeping system must have original documents
and records organized in a logical way that conforms to
acceptable accounting methods and procedures.

(ii) Documents and records must be retrievable and in a
readable format.

(b) The recordkeeping system must include original, dated
documents and records that contain enough detail to prove the
purchase, inventory, and sale of WIC approved foods, including
infant formula, by brand name, container size and quantity.
These documents and records must be kept for a period of six
years following the date of final payment.

(c) Submit to the department upon request documents and
records showing food is purchased from a wholesale supplier or
other nonretail supplier, such as a food manufacturer or a
fresh produce supplier.

(d) Submit to the department upon request documents and
records showing infant formula is purchased from an infant
formula manufacturer or supplier named on the WIC approved
infant formula supplier list.

(e) Submit to the department upon request itemized sales
receipts for WIC purchases using an electronic cash register
or a manual system. Sales receipts must include the store
name, food product name, quantity sold, price of each item,
and the date of sale.

(a) Oregon and Idaho retailers located on the Washington
border and that serve Washington residents are exempt from
Washington state business license, permit, and certification
requirements. They shall meet all applicable business
license, permit and certification requirements for their
respective state.

(b) A retailer authorized as an "infant formula only
provider" is exempt from the full line grocery store
requirement. "Infant formula only provider" means a retailer
for whom WIC authorization is limited to the redemption of WIC
checks issued for infant formula.

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NEW SECTIONWAC 246-790-086
Requirements of an authorized retailer.
(1) An authorized retailer shall:

(a) Comply with the terms and conditions of their
contract;

(b) Continue to meet the retailer selection criteria in
WAC 246-790-077 throughout the term of the contract;

(c) Notify the department prior to ownership changes; and

(d) Notify the department prior to store closures.

(2) An authorized retailer may reapply at the time of
contract expiration; however, neither the department nor the
retailer has an obligation to enter into a subsequent
contract.

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NEW SECTIONWAC 246-790-105
Failure to meet WIC program
requirements.
(1) When a retailer is out of compliance with
the requirements of 7 C.F.R. 246.12, this chapter, or the
contract, the department may initiate appropriate enforcement
action which may include notices of violation, unless the
department determines that notifying the retailer would
compromise the investigation; claims for reimbursement; and
disqualification.

(3) For violations of the requirements of this chapter,
not specified in 7 C.F.R. 246.12(l), the department may take
enforcement action based on a pattern of violations.
Department actions may include:

(a) Notice of violation and offer of technical assistance
for the first incident;

(b) Notice of violation and warning of disqualification
for the second incident of the same type of violation;

(c) One year disqualification for the third incident of
the same type of violation.

(4) A "pattern" of violations means more than one
documented incident of the same type of violation within a
thirty-six month period.

(5) An authorized retailer's contract is terminated on
the effective date of a disqualification.

(6) An authorized retailer who has been disqualified may
reapply at the end of the disqualification period.

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NEW SECTIONWAC 246-790-125
Retailer appeal process.
(1) The
retailer may request an administrative appeal of certain
adverse actions as provided in 7 C.F.R. 246.18. Actions that
the retailer may not appeal are described in 7 C.F.R. 246.18
(a)(1)(iii).

(2) A request for appeal must:

(a) Be in writing, state the issue, and contain a summary
of the retailer's position on the issue;

(b) Be filed with the Department of Health, Adjudicative
Service Unit, P.O. Box 47879, Olympia, WA 98504-7879, with a
copy sent to the WIC Nutrition Program at P.O. Box 47886,
Olympia, WA 98504-7886; and

(c) Be received by the department of health, adjudicative
services unit within twenty-eight days of the date the
retailer receives the notice unless otherwise specified in the
program's notification of adverse action.